Is Electrification Worth It in Arkansas?

Arkansas is heat pump country. Cheap electricity, hot summers, mild winters.

Little Rock gets 3,200 heating degree days and 2,000 cooling degree days. Electricity costs $0.10/kWh—some of the cheapest in the U.S. Natural gas runs $1.15/therm but many Arkansas homes don't have gas lines. Heat pumps have been standard in new construction here for 30+ years.

Absolutely get a heat pump. If you're one of the few Arkansas homes still using propane or electric baseboards, switching will save you $700-1,400 per year. Even if you're replacing an old heat pump, upgrading to a modern variable-speed unit will cut your bills 25-35%. Payback under 6 years is typical.

Updated December 2024Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,363
Full electrification
Available Incentives
$9,900
Federal + state + utility
CO₂ Reduction
12.8 tons
Per year

Arkansas Energy Costs

Electricity Rate
$0.118/kWh
Natural Gas Rate
$1.35/therm
Average Electric Bill
$128/month
Average Gas Bill
$55/month
Climate Zone
mixed
Heating Degree Days
3,200
Cooling Degree Days
2,000

Visual ROI Analysis

Payback Period Comparison

Lower is better • Shortest payback = fastest return on investment

Annual Savings Comparison

Higher is better • More annual savings = greater long-term benefit

Cumulative Net Savings Over Time

Point where line crosses $0 = payback achieved • Steeper line = faster savings growth

Return on Investment by Upgrade

🌡️

Heat Pump HVAC

Upfront Cost$12,000 - $22,000
Total Incentives-$2,250
Net Cost$9,750 - $19,750
Annual Savings$99/yr
Payback PeriodNot Recommended
Lifetime ROI15%
CO₂ Reduction2.9 tons/yr
☀️

Solar Panels

Upfront Cost$15,000 - $30,000
Total Incentives-$4,500
Net Cost$10,500 - $21,000
Annual Savings$828/yr
Payback Period20.0 years
Lifetime ROI107%
CO₂ Reduction3.3 tons/yr
💧

Heat Pump Water Heater

Upfront Cost$2,500 - $4,500
Total Incentives-$2,150
Net Cost$350 - $2,350
Annual Savings$228/yr
Payback Period7.2 years
Lifetime ROI75%
CO₂ Reduction1.8 tons/yr

EV Charger + Electric Vehicle

Upfront Cost$800 - $2,500
Total Incentives-$1,000
Net Cost$-200 - $1,500
Annual Savings$1,208/yr
Payback Period0.6 years
Lifetime ROI1559%
CO₂ Reduction4.8 tons/yr

Full Electrification Package

Total Upfront Cost
$30,300 - $59,000
Total Incentives
-$9,900
Net Cost After Incentives
$20,400 - $49,100
Annual Energy Savings
$2,363/year
Lifetime Savings (18 years)
$42,536
Simple Payback
16.4 years
💡

Best ROI for Arkansas

Based on your state's energy costs and climate, EV Charger offers the best return on investment with an average payback of 0.6 years and an ROI of 1559%.

0.0 years slower than average compared to the national average.

Ready to electrify your Arkansas home?

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